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LInkedIn Crashes 25% After Missing Revenues, Cutting Outlook

Submitted by Tyler Durden on 04/30/2015 16:27 -0400

LNKD has collapsed 27% on the back of missed revenues and lowered outlooks for Q2 and 2015 drastically. What is most dramatic - just as was seen with YELP and TWTR is the velocity of repricing which indicates just how far expectations for growth in the tech sector are from reality... and strongly suggests all is not well as El-Erian's "wedge" between markets and fundamentals snaps shut...

Just totally ugly:

*LINKEDIN SEES 2Q REV. $670M-$675M, EST. $718.3M
*LINKEDIN SEES 2Q ADJ. EBITDA ABOUT $120M, EST. $197.1M
*LINKEDIN SEES 2Q ADJ. EPS ABOUT 28C, EST. 74C
*LINKEDIN SEES 2015 ADJ. EBITDA ABOUT $630M, EST. $815.9M REV.
*LINKEDIN SEES 2015 ADJ. EPS ABOUT $1.90, EST. $3.03

The result...

Which means LNKD has done nothing for over 2 years...

and th elatest exuberance is all as margin debt soars.

Charts: Bloomberg

- advertisements -

Thu, 04/30/2015 - 16:30 | 6048142 Fyodor Does DF Ski

LinkedOut.

Thu, 04/30/2015 - 16:32 | 6048157 HedgeAccordingly

wow..Trading 186 now from 252 close!!!

IPO memories! http://hedgeaccordingly.com/2011/01/let-social-media-flotation-party-beg...

Thu, 04/30/2015 - 16:38 | 6048186 knukles

Happy days for all the social media thingamajigglies that make money by keeping stray attention spans on things like ...
Look! A squirrel!

Thu, 04/30/2015 - 16:54 | 6048275 NoDebt

Did somebody say squirrel? WHERE?

Dammit, knuk, you broke my concentration. I had something really good to post and now I forgot it.

Thu, 04/30/2015 - 16:57 | 6048291 jbvtme

i salute social media for the fine job they do distracting the goats from the real pleasures of life, a truly uncrowded trade.

Thu, 04/30/2015 - 17:01 | 6048302 flacon

The six-sigma take away lesson from this is that RESUMEES ARE NOTHING MORE THAN VAPOURWARE. This confirms the notion that NOBODY IS HIRING. YOU'RE FUCKED unless you own a trading account.

Thu, 04/30/2015 - 17:07 | 6048335 underman

SF real estate crater up next.

Thu, 04/30/2015 - 17:10 | 6048347 CrazyCooter

There is HUGE value to be made monetizing keeping in contact with people you don't talk to.

Everyone here is so negative ...

Regards,

Cooter

Thu, 04/30/2015 - 17:35 | 6048437 cigarEngineer

It has always been that nobody will give you anything. You have to take it for yourself.

The situation today is that the only way to get a job today is to call the manager and tell him to hire you.

LinkedIn is nothing but a circle-jerk of untalented hacks fawning over their "accomplishments." Anybody making real money is too busy for that.

Thu, 04/30/2015 - 20:05 | 6048853 TheRedScourge

Really wishing I had established a much bigger short in this last month. Only made a few hundred dollars betting on the inevitable :(

Thu, 04/30/2015 - 20:44 | 6048965 Ward cleaver

Cooter did you know I went to high school and worked at a bank before I was fired? Now isn't that worth knowing

Thu, 04/30/2015 - 21:07 | 6049021 sun tzu

I still don't understand how they make money

Thu, 04/30/2015 - 16:59 | 6048284 jbvtme

no more social media?? maybe the girls will notice me again...

Thu, 04/30/2015 - 17:02 | 6048311 HonkyShogun

I'm ready for some antiSocial media personally.

Thu, 04/30/2015 - 17:02 | 6048312 flacon

Go to xhamster.com to find girls that want you.

Thu, 04/30/2015 - 20:48 | 6048981 Ward cleaver

Xhamster best site on interned (including ZH)

Thu, 04/30/2015 - 23:40 | 6049404 Handful of Dust

I bet their web site crashes every day when employees arrive for work at the SEC. Do they have a Midget category?

Thu, 04/30/2015 - 17:38 | 6048445 monkeyshine

Any company which can convince the majority of people to happily and willingly give away their innermost secrets, thoughts and opinions, feelings, plans and aspirations, enjoyments, relations and activities should be worth hundreds of billions of dollars.

Thu, 04/30/2015 - 18:18 | 6048546 New Kid

Social media not doing well? Maybe their NSA payments are late this quarter.

Thu, 04/30/2015 - 16:32 | 6048158 Jumbotron

True story. I deleted my Twitter account the day that it shit the bed, just a couple of days ago.

I also deleted my LinkedIn account on the same day. Now they shit the bed.

I"M A MARKET MOVER BABY........YEAH !!!!

Thu, 04/30/2015 - 16:36 | 6048179 Philo Beddoe

Buy an ounce of Silver please.

Thu, 04/30/2015 - 16:40 | 6048192 knukles

I often wonder why anybody wants a social media account.
I often wonder why any serious financial manager would "tweet" thoughts and ideas (like PIMCO)...

Thu, 04/30/2015 - 16:49 | 6048226 CarpetShag

for the same reason that Goddamm Sux makes stock plugs and Mohammed El-Erection says he is all-in with cash.

Thu, 04/30/2015 - 16:52 | 6048259 KnuckleDragger-X

In our narcissistic little world you have to be cool somehow. Personally I prefer a cold beer and sitting shooting the shit with friends, but then again, I've never been cool.....

Thu, 04/30/2015 - 17:02 | 6048313 Vampyroteuthis ...

I often wonder why any serious financial manager would "tweet" thoughts and ideas (like PIMCO)...

Knuckles it is like any propaganda. You tweet misleading things then do the opposite. Goldman is a master with the muppets in this regard.

Thu, 04/30/2015 - 17:22 | 6048395 Fun Facts

linkedin to the NSA stasi 2.0 database.

Thu, 04/30/2015 - 17:45 | 6048474 Bumpo

Linkedin is the only social media thingy I belong to. Not cuz I do a lot of networking there - just interested in what my old friends are up to since 95% of us got layed off after 15 years for the same tech company. Sounds like sour grapes, but I don't envy the survivors. They seem to be in a pretty shitty mood, Lol

Thu, 04/30/2015 - 17:57 | 6048505 Alvin Fernald

Before FB changed it's algo to literally clamp down on seeing what your friends post, I educated many people on the dangers of central banks, false flag events, geoengineering, Operation North Woods etc etc.
Now FB makes it so hardly anyone sees your posts even if they want to. Fuck them. I am cancelling my account there as soon as I contact the many friends I made fighting the information war.

So connections and information is why you would want to have a social media account. I do not recommend it due to the major loss of privacy but it was worth it to me.

*irony alert
zerohedge = social media.

Thu, 04/30/2015 - 20:52 | 6048991 Ward cleaver

Why would Bill Gross let the world know about his bund "short of a lifetime opportunity", because he wants everyone to jump in so that he can pocket some short term gains. He hasn't been predicting too well recently

Thu, 04/30/2015 - 16:46 | 6048218 Jumbotron

"Buy an ounce of Silver please. "

NO NO NO !!! I'm a confirmed MARKET MOVER, BABY.......YEAH !!!!! Gotta do what the market movers do....

..........< buy the fucking dip >

Thu, 04/30/2015 - 16:54 | 6048269 KnuckleDragger-X

Well Hillary is for sale and she's certain a giant dip.......

Thu, 04/30/2015 - 17:04 | 6048326 Philo Beddoe

Not sure I wanna fill that gap.

Thu, 04/30/2015 - 17:30 | 6048422 Barnaby

Long Dong Silver couldn't fill that gap.

Thu, 04/30/2015 - 16:49 | 6048240 NuYawkFrankie

Are you a Click Farm?

Thu, 04/30/2015 - 16:53 | 6048262 NoDebt

Jumbo- I hope your got back your subscription fee and deactivated auto-bill for them on your credit card.

Oh, wait. You know, maybe that's part of the problem with their business model.

Thu, 04/30/2015 - 16:57 | 6048290 Jumbotron

HUH ?

I gave nobody what I don't have.

And I deleted / closed all my social media accounts....because after 5 years, I never used a one.

Well....I did do a little sexting with the wife.....< but that's private.....oh...wait >

Thu, 04/30/2015 - 17:11 | 6048351 CrazyCooter

Can you pretty please delete your whitehouse.gov account?

Regards,

Cooter

Thu, 04/30/2015 - 16:34 | 6048170 Stoploss

There is no need to link up a bunch of jobless people. They meet down at the bar.. Now.

Thu, 04/30/2015 - 16:40 | 6048181 aVileRat

Next leg down will be when the share multiples crater and stock based comp is blasted out into the tape.

Thu, 04/30/2015 - 16:41 | 6048198 DogOfSinope

Damn, why they didn't follow great advices of their numerous InFluencers? You know, top-20-this, top-10-that... All would be good.
Seems that soon it will be appropriate for them to re read the "Batman's top 15 mindblowing secrets about mushroom foraging"

Thu, 04/30/2015 - 20:56 | 6049003 Ward cleaver

LinkedIn told me not to pick my nose during the interview. Better advice if I upgrade to their premium subscription

Thu, 04/30/2015 - 16:51 | 6048248 CarpetShag

They omitted to mention their new stock buyback plan.

Thu, 04/30/2015 - 19:33 | 6048753 thetruthhurts

Which means LNKD has done nothing for over 2 years...

yea.....if you were stupid enough to hold it....

Thu, 04/30/2015 - 22:57 | 6049297 j reuter

Check this legitimate ways to mak? money from home, working on your own time and being your own boss... Join the many successful people who have already used the system. Only reliable internet connection needed, no prior experience neccessary, that's why where are here. Start here... www.globe-report.com

Thu, 04/30/2015 - 16:30 | 6048148 Iam Yue2

Linked out.

Thu, 04/30/2015 - 16:48 | 6048232 JuliaS

Weaklinked.

Thu, 04/30/2015 - 16:30 | 6048149 Stanley Kubrick

It's.about.fucking.time.

Uber next, por favor....

Thu, 04/30/2015 - 16:31 | 6048153 Irishcyclist

Delighted.

Twitter failing and now LinkedIn.

The demise of social media can't come quickly enough

Thu, 04/30/2015 - 16:33 | 6048160 SERReal1

I agree. Those who forget history (MySpace, Friendster, Pets.com, etc, etc,) are doomed to repeat it.

Thu, 04/30/2015 - 16:38 | 6048187 Philo Beddoe

I miss all the time catching with old flames on Pets.com

Thu, 04/30/2015 - 16:49 | 6048239 Jumbotron

Yeah.....you and all your old pussies.

< wait....we are talking about real pussies, right? I mean....not CATS ?? RIGHT ?! TELL ME YOU'RE NOT TALKING ABOUT CATS???????? EEEEeeewwwww !!!! >

Thu, 04/30/2015 - 16:32 | 6048154 SERReal1

Can anyone say Tech Bubble 2.0?

One day investors will wake up and realize that companies that generate all of their revenue from advertising and produce nothing are not worth anything.

Thu, 04/30/2015 - 16:53 | 6048268 poor fella

Exactly, they shouldn't be called 'tech companies' when everything is basically affiliate advertising and a few seconds of eyeball time. How much buying really occurs and can be attributed to a freakin ad on a banner? These companies are advertisers, and what good is it when - NOBODY HAS ANY #$%^ MONEY!

Thu, 04/30/2015 - 18:22 | 6048556 Main_Sequence

Bravo. Fucking Bravo. I've been saying this for years as well. Who the hell is clicking on the Ads on LinkedIn and Facebook, or Twitter or wherever? How many people have actually clicked on an advertisement which has then led to a direct purchase? Exactly. Fucking nobody.

These social media companies are selling their "value" on how many users their service has, and in the past raking in cash hand over fist selling advertisements.

I've ran a few LinkedIn campaigns and you know what? They are absolutely, totally ineffective. After an average of 220k ad impressions (how many times they show up in front of a viewer), my click rate was something like 0.0001%. Paid a few hundred bucks, and my ROI was ZERO.

There also seems to be a boatload of people advertising services on how to make money on LinkedIn and not adding any real value of any sort -- "For $29.95 I'll show you how to start a successful online business..."

Definitely LinkedOut.

Thu, 04/30/2015 - 16:31 | 6048155 Kaiser Sousa

buy the dip...

it can only go up from here......

like everything else except Gold and Silver...

Thu, 04/30/2015 - 16:33 | 6048161 B2u

Where is the missing LINK'd.

Thu, 04/30/2015 - 16:34 | 6048169 DIgnified

And Twitter in the same week. Huh. Is this the sound of a tech bubble beginning to pop?

Thu, 04/30/2015 - 20:38 | 6048318 JuliaS

Yelp joining the party at 21% down for the day.

Some interesting facts about the company off Wikipedia.

Although founded in October 2004 it became profitable for the first time in late 2014 (10 years of capital drain under its belt).

Currently the number of fake reviews posted on Yelp by business competitors amount for 20-25% of all reviews based on internal and independent estimates.

The firm, although barely profitable, has an appetite for acquisitions spending half of its revenue on expansion and diversification.

"Yelp" indeed!

Thu, 04/30/2015 - 19:10 | 6048694 walküre

Not just the tech bubble.... The most exotic and most margin traded crap is crashing first. Always the same. Right on target for the September/October meltdown.

Thu, 04/30/2015 - 16:34 | 6048171 Rainman

Maybe the bizness folk using LinkedNSA have awakened.

Thu, 04/30/2015 - 16:59 | 6048298 JuliaS

Facebook is not even hiding it: https://imagizer.imageshack.us/v2/944x538q90/845/gez7.jpg

Thu, 04/30/2015 - 16:36 | 6048175 ebworthen

What? The Social Media miracle has stalled?

Tech Bubble 2.0!!!

Thu, 04/30/2015 - 16:40 | 6048191 buzzsaw99

that's like a $30B company. /SARCASM

Thu, 04/30/2015 - 16:43 | 6048206 Berspankme

Social media is like porn for the self absorbed

Thu, 04/30/2015 - 16:46 | 6048215 ebworthen

Juvenile narcissism - it's a societal disease progressing apace.

Thu, 04/30/2015 - 16:50 | 6048245 Jumbotron

Well....with sexting on Twatter and Fuckbook.....it really is like porn.

Fri, 05/01/2015 - 01:01 | 6049543 JuliaS

The ultimate smartphone:

http://www.83thegalleryclovelly.co.uk/images/products/shabby/handle-mirr...

Thu, 04/30/2015 - 16:51 | 6048207 Squid Viscous

another Cramer fave bites the dust... why anyone would own this turd the way the heeb insiders have been cashing out for years us beyond me...

Fri, 05/01/2015 - 00:15 | 6049465 Navymugsy

Cramer just rec'd MO. I need to dump my Altria shares tomorrow morning so I can sleep at night. Shame as they're up 50% over where I bought them.

Thu, 04/30/2015 - 16:44 | 6048209 Barnaby

The Stock Market discovered the level of profile inflation at LinkedIn and reacted accordingly.

Thu, 04/30/2015 - 16:51 | 6048250 Rainman

More lying going on there than in the Congressional Record ... I tell you that.

Thu, 04/30/2015 - 16:44 | 6048212 Berspankme

What would make this really great would be a bunch of self absorbed hipsters comitting suicide

Thu, 04/30/2015 - 16:45 | 6048213 CarpetShag

"Which means LNKD has done nothing for over 2 years..."
That's a significant gain after accounting for deflation.

Thu, 04/30/2015 - 16:46 | 6048217 redc1c4

people use Linked In to find w*rk...

there aren't any j*bs to be found, so why bother with their service?

Thu, 04/30/2015 - 16:51 | 6048249 Jumbotron

You sir...just won the Interwebs.

Thu, 04/30/2015 - 16:47 | 6048223 SERReal1

And when does Fackfuck report earnings????? That will be the trifecta of social media loss of relavence.

Thu, 04/30/2015 - 16:47 | 6048224 redc1c4

people use Linked In to find w*rk...

there aren't any j*bs to be found, so why bother with their service?

Thu, 04/30/2015 - 16:49 | 6048241 economessed

I'm so old, I can remember when people talked to one another, you didn't need a screen to communicate, and people got jobs without having to pay extortion fees to recruiters.

Now GET OFF MY LAWN!!!!

Thu, 04/30/2015 - 16:51 | 6048247 q99x2

What's Linkden

Thu, 04/30/2015 - 16:52 | 6048256 CarpetShag

A collection of female sales managers showing a lot of cleavage.

Thu, 04/30/2015 - 20:03 | 6048849 Sokhmate

An underground den of links (septic tank)

Thu, 04/30/2015 - 16:55 | 6048282 cherry picker

If someone doesn't have my phone number or email address that means it is someone I do not wish to speak to anyway.

LinkedIn and Farcebook is just another avenue for people and prospective employers to view and criticize. What you do when not working is your own business and not the company's, as long as you are not stealing, raping, assaulting or murdering anyone.

Thu, 04/30/2015 - 16:56 | 6048285 The Axe

For every idiot at Stocktwits or on CNBC some analyst actually do real work BOOM and a ShoutOUT to Brean Capital's Sarah Hindlian for her MARCH 17th SELL on LNKD

Thu, 04/30/2015 - 16:57 | 6048288 BoPeople

-$.34/sh GAAP un-earnings. Almost triple the loss when compared to the same period last year.

I was kind of wondering if they would dump the stock. When a company that has been selling shares like crazy every quarter all of a sudden borrows a cool billion in cash (debt) at a time that they have no cash shortage, one might think it is close to topping out.

Did they use the cash for the acquisition? Nope, it has not closed yet. Possibly they used the cash to close out insiders and cronies. Once that is done, the price can fall, right?

Thu, 04/30/2015 - 17:15 | 6048366 Buster Cherry

Every once in a while I like to get on.Linkedin just to see assholes I worked with in the past tout their fantasy image they have of themselves.

Thinking of Jack Ellingson....

Thu, 04/30/2015 - 19:58 | 6048833 djsmps

I love all the people I used to work with, who actually had my job.

Thu, 04/30/2015 - 17:29 | 6048416 Yen Cross

Linked<>out

Thu, 04/30/2015 - 17:45 | 6048476 pragmatic hobo

cutting outlook seem to be a fad these days ... unless you are a energy company in which case the analysts have already done it for you so it is nearly impossible to miss earnings or guidance ...

Thu, 04/30/2015 - 18:13 | 6048534 Caveman93

$300 a year can buy you a self-absorbed web page to connect with other self-absorbed people who don't care, don't know and really have nothing for you. It is however nice if you enjoy receiving phone calls from "recruiters" who just graduated from college with a BA in BS and this is their first "job". By the way, is it possible this had anything to do with there being no jobs to begin with?

You know, LinkedIn should have realized that they were fucked the moment the "Unemployed Americans Social Network" Group became popular on their site. Geez.

Thu, 04/30/2015 - 18:13 | 6048537 Infinite QE

Linkedin has already captured all of the emails of the schmoes dumb enough to sign up for it so unless they colonize Mars or something, their growth has peaked.

Thu, 04/30/2015 - 18:28 | 6048574 Full Nelson

Mommy, is it true that Americans used to build stuff?

Thu, 04/30/2015 - 18:35 | 6048602 I Write Code

Still overpriced by about 90%.

I try to "hang out" there, read some "articles" which are all under 1,000 words, post some comments, but 90% of the comments there are "cool article, thanks" even though 80% of the articles are crap. Tells you a little about the work force.

Thu, 04/30/2015 - 19:15 | 6048705 Bernanke'sDaddy

This story made my fucking day.

Now for real estate and rent to take a well deserved shit around these parts.

Thu, 04/30/2015 - 19:32 | 6048748 Psquared

After getting fictitious requests from people to join their network (people I did not know and who were not in my geographic or professional area) I canceled and deleted my account. For months afterwards I continued to get emails and notices even though I should not even have a visible profile. If ever there was a sham this is the one.

Thu, 04/30/2015 - 19:39 | 6048769 Kruzilla

So amazon looses money, trades up. LinkedIn makes money and trades down. Hmmm

Thu, 04/30/2015 - 20:16 | 6048890 Bunga Bunga

There goes another fugazi billionaire.

Thu, 04/30/2015 - 21:29 | 6049074 Chad_the_short_...

I am a VERY happy fella right now for buying front month(may 1st) puts on this today, $250 strike I bought for $9 a piece, however, seeing that I could have turned in like $3k into 100-200k in the $210 puts kind of makes me sick lol. Things like this though should motivate us in the market as there are always awesome opportunites. I went long GPRO before their eps, sold 15% higher a day later, shorted Yelp at $51 and covered at $43(i know i should have stayed short) and today I bought lnkd puts. Right now, EPS plays are what to do.

Fri, 05/01/2015 - 02:42 | 6049651 TheLooza

right there with you. I have 5 245Ps expiring tomorrow. Had been looking at a deep OTM play of about the same size and backed off. Too bad. Just hoping the fucker continues to plunge tomorrow and doesn;t open at 220 or something annoying.

LInkedIn Crashes 25% After Missing Revenues, Cutting Outlook

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